Oil nosedived over 3% following Saudi price cuts to Asia

International benchmarks for crude oil ended the first trading session of the week with sharp decreases after Saudi Arabia slashed the official selling price to Asia for February loading by $2/barrel. The price decision imbued fear into the market over the demand outlook in China as well as globally. 

Brent fell $2.64/barrel or 3.4% to settle at $76.12/barrel.

WTI plunged $3.04/barrel or 4.1% to close at $70.77/barrel.

Investors temporarily put aside the supply disruption in Libya and the shipping issues in the Red Sea.